Ever had the wish to buy the latest electronic item, and failed due to less money in hand? Well, this is not new and happens to almost every individual in his or her lifetime. This hurts! Losing a very valuable item just because you did not have enough money.
What if in such a situation some said, buy now pay later? I am sure, you will be on cloud nine. Let me tell you a secret then, this is no more a hypothetical situation and can actually come true in real life. How? Through financing options designed by several providers. As a customer, you would not need to pay the entire price upfront and can divide it over a period according to your convenience.
As a marketer, this brings a lot of customers to your plate and can improve the sales of the business. So let us see what this has in store to provide the customers.
What is BNPL?
Buy now pay later is a payment option that allows the customers to divide the cost of the product over a period. This usually is decided by the finance provider and the customers need to pay a small amount of interest in addition to the actual price.
This strategy helps the stores to curate payments as per the customers and give them an option to pay less during one set up. Why should you provide such a service?
Let us take you through the benefits and how this brings changes to the business strategies.
How is it beneficial?
1. More customers.
A collectively large amount sounds way too much burden in the pocket. For example, if you are given an option to spend $2000 in one month for a certain product and $200 per month which will you choose? Many often go for the second condition. Many experts like Dan Kennedy have written the benefits of segmenting the payment across months to make payments. This allows the people to have multiple to make people and they buy more products.
The method is applied to many products and services and there are definite results seen in terms of an increase in customer growth.
2. Buyers will purchase goods efficiently.
Consumers often prefer small payment options that can be made over a period, this allows them to form a budget that will not burden them in a single month. This also allows the marketers to make additional money on the actual price of the product.
This method has proven to be beneficial and it is seen that more than 15% of customers are now opting for the option. They also confirm they would use the very service in case of another purchase.
3. A great number of choices.
Customers love it when they are kept as a priority. Even if customers do not buy the product they will be aware that they are getting immense options of making payments at the check-out point. This will encourage the customers to avail the services whenever they buy a certain product in the future.
According to expert, Neil Patel 56% of consumers like to see multiple payment options so that they do not fall short of any kind of purchase options. This also helps in creating trust among the customers and bringing more customers.
4. Touch-free solution.
Buy now pay later, or similar payment options can be made touch free by the stores. This involves giving customers the option to make payments and fill out the check out a form through their phones. This just needs integration of the service with a cross platform network.
This also helps to keep the entire process transparent and can be applied to online as well as offline stores. This does not need the customers to show credit cards or touch anything in the stores to make the payments. This method has shown about an 85% increase in the customer crowd. A good service provider can be used in this case to make the system more efficient.
5. Overhead and admin costs are low.
Marketers are often afraid of such a finance option as they put their trust in a completely unknown person. This involves the risk of stopped payments, frauds, administrative work, legal documentation, and so much more. All this can be avoided with the help of a good finance providing platform.
The finance providing platform will ensure to provide the marketers with every kind of security. When you use such a service you receive the entire payment once the customer’s finance is approved. The rest of the transaction is carried out among the customer and the leading party and the stored need not worry about payments and other frauds.
6. Multiple payment options.
As we said, customers need multiple payment options. This can be taken a step further by providing them with finance according to their needs. If the customer falls short of $200 make the finance policy according to it. This helps in bridging the gap between the customers and the marketers and benefits them both equally.
Buy now pay later is a modern solution to modern problems. It ensures that customers are comfortable with purchases and also enables businesses to make changes that can indirectly profit them in the long run. This is one of the best financing options available in the market.
So, if you are convinced about the finance service go ahead and implement it in your store today.
Guest article written by: Allison Janney is a Sales & Marketing Manager at ChargeAfter. She would like to share content on Finance Industry like Point of Sales financing, Buy now Pay later, consumer financing & Ecommerce financing for valuable reader.
Buy now and pay later option really changed the business strategies, like if you don’t even have a full amount to complete your desired shopping then you can select BNPL option, which convert your payment into installments and then you can pay later, its best option provided by merchants, really helpful thanks
The solar power system also have a pay-as-you-go .